"With all that data out there, it is providing and introducing further concerns from the consumer, because they are creating this huge digital footprint that needs to be managed," he said.

"And so, therefore, the onus on companies to be more open and more transparent about how they're managing the consumer's data."

Mr Wiadrowski says now is the time for consumers to become more in touch with the personal data they are voluntarily offering up through social media.

But he says it is unclear whether individuals and organisations know exactly what this new legislation means.

"I think that is emerging, but until we see the first situation where we see the Privacy Commissioner act and actually investigate and fine companies for breaching it, it's under the radar," Mr Wiadrowski said.

Under this legislation, digital media organisations will have to declare the type of data they are taking from individuals and the way that they use it.

"I think one of the challenges for corporations is that there is no time requirements about how long data is maintained," Mr Wiadrowski said.

"As time progresses, consumers' digital data is growing extraordinarily, and that in itself provides challenges for corporates to manage that data and store it and make sure the security is appropriate."